The pound rose to the highest level this year against the dollar after ICAP Plc and Marks & Spencer Group Plc posted profit that beat analysts’ estimates, spurring speculation the worst of British recession is over. The U.K. currency traded as high as $1.5480, its strongest since Dec. 18, and climbed versus the euro as the FTSE 100 Index of shares advanced for a second day. Gilts fell before a sale by the Treasury of 1.25 billion pounds ($1.93 billion) of 30-year securities today, and a record 5 billion-pound auction of bonds due March 2014 scheduled in two days. “News from the corporate front is pretty encouraging and that’s supporting the pound,” said Jeremy Stretch, a senior currency strategist at Rabobank International in London. “Markets are looking through the debris for pieces of good news and then acting accordingly.” The pound rose to $1.5452 as of 9:11 a.m. in London, from $1.5348 yesterday. It appreciated to 88.13 pence per euro, from 88.35 pence. It earlier strengthened to the highest level since May 7. The yield on the 10-year gilt rose six basis points to 3.54 percent. The two-year note yield advanced five basis points to 1.07 percent. Bond yields move inversely to prices.

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